Department of Natural Resources and Mines Valuation Systems & Recent Reforms Presentation to the Local Authorities Revenue Management Association Neil Bray (Valuer-General) State Valuation Service

2 © The State of Queensland, Department of Natural Resources and Mines, 2012 State Valuation Service 1.6 million annual statutory land valuations SVS valuers and administration officers are located in 19 offices across the State Valuations are used as a basis to calculate: –Local government rates –Land tax (OSR) –State land rental for leasehold land (DNRM) –Commonwealth Grants Commission Statutory valuations annually raise over: $1 billion in land tax $2.5 billion in local government rates $98 million in leasehold rents

3 © The State of Queensland, Department of Natural Resources and Mines, 2012 Statutory Annual Valuation Cycle

4 © The State of Queensland, Department of Natural Resources and Mines, Annual Valuation – Total $ Value $243.58b (55%) $56.18b (12%) $27.30b (6%) $46.86b (10%) $20.19b (4%) $23.47b (5%) $3.29b (1%) $30.49b (7%)

5 © The State of Queensland, Department of Natural Resources and Mines, 2012 SVS Business Groups Office of the Valuer-General –Quality Assurance –Objections coordinator Policy and Legislation (Strategy and Planning, Operational Support) SVS Business Services QVAS Regional Operations Client Valuations

6 © The State of Queensland, Department of Natural Resources and Mines, 2012 Role of the Valuer-General Powers and responsibilities direct, control and manage the statutory valuation of land in accordance with the Land Valuation Act 2010 oversee Quality Assurance and Peer Review activities implement ongoing improvements to the valuation system maintain the valuation roll issue annual and maintenance (subdivision, amalgamation rezoning) valuations supply valuation related information determine and administer valuation objection outcomes respondent in valuation related Court appeals

7 © The State of Queensland, Department of Natural Resources and Mines, 2012 Quality Assurance Measure and report on the performance of the SVS including: –accuracy and uniformity of the valuations produced –efficiency and effectiveness of business processes Identify areas requiring improvement Make recommendations on how to improve Provide organisational focus on continuous improvement

8 © The State of Queensland, Department of Natural Resources and Mines, 2012 Objections Coordinator monitor and report on the objection process throughout the State ensure consistent approach through procedures and consultancy liaise with Land Court manage the Independent Chairpersons process Objection Lodged Scanned into QVAS Initial Assessment Properly Made Test Initial Assessment Properly Made Test Correction Notice Final Assessment Valuer Review Decision on Objection Objection Conference

9 © The State of Queensland, Department of Natural Resources and Mines, 2012 Objections Landowners have 60 days to lodge an objection –must meet properly made test –subject to internal and external review Valuers investigate objection grounds and issue decision Objectors can appeal decision to the Land Court 2012 objection statistics 3,621 objections Decided 2,949 objections (81.4%) (as at 3 September 2012) Leaving 672 outstanding objections This includes 299 objections over $5m (independent chair) 39 currently not properly made

10 © The State of Queensland, Department of Natural Resources and Mines, 2012 Objections *2004 – land tax valuation issue only

11 © The State of Queensland, Department of Natural Resources and Mines, 2012 Policy and Legislation (Strategy and Planning, Operational Support) develop policies, procedures, work instructions and guidelines in accordance with LVA amend and interpret legislation consult and negotiate with key stakeholders develop communication and consultation strategies and preparing communication materials – notices, fact sheets, guides etc.

12 © The State of Queensland, Department of Natural Resources and Mines, 2012 SVS Valuation Service Delivery Registered valuers located in 19 offices across the State provide professional and technical valuation expertise in –statutory valuations –State land asset management –asset valuations –market rental assessments –acquisitions and disposals determine objections defend Land Court appeals on behalf of Valuer-General

13 © The State of Queensland, Department of Natural Resources and Mines, 2012 Annual Valuation process valuers analyse sales information for each land use category market movement determined for property types and applied to similar properties new values entered into QVAS checks and balances undertaken QVAS prepares for issue Annual Valuations issue (prior to 31 March)

14 © The State of Queensland, Department of Natural Resources and Mines, 2012 Market survey and consultation Survey the property market –if little or no market movement in an LGA then an annual valuation may not occur for that LGA Consultation with local governments and key stakeholders following market survey Results of consultation with LGs and industry groups and market survey informs Valuer- General’s annual valuation decision

15 © The State of Queensland, Department of Natural Resources and Mines, 2012 SVS Client Valuations specialised valuation and property advisory service to clients clients – Local, State and Commonwealth Gov’t agencies and GOCs valuations include asset, easement, resumptions, acquisitions, disposals and market rental assessments generated $2,666,315 in revenue in the financial year

16 © The State of Queensland, Department of Natural Resources and Mines, 2012 QVAS – Electronic Valuation Roll valuation methodology used – site value or unimproved value owner’s name and address for service sale price and date of sale of each property statutory land value and date of effect for each valuation land area, location and legal description property identification number amount of deduction for site improvements (if applicable) amount of offset (if applicable) other information that the Valuer-General considers appropriate

17 © The State of Queensland, Department of Natural Resources and Mines, 2012 QVAS Business

18 © The State of Queensland, Department of Natural Resources and Mines, 2012 Valuation Reform in Queensland Valuation Reform Reference Group (VRRG) established by the Government as part of the reform process –ongoing consultation with key stakeholders VRRG effected –legislative changes: Land Valuation Act 2010 –Peer review panel to independently review reform implementation –Quality Assurance team established to provide continuous improvement in process and practice

19 © The State of Queensland, Department of Natural Resources and Mines, 2012 Land Valuation Act 2010 came into force on 20 Sept 2010 replaced the Valuation of Land Act 1944 (VoLA) brought: modernity strength consistency transparency equity

20 © The State of Queensland, Department of Natural Resources and Mines, 2012 Land Valuation Act 201 Introduced: re-instatement of the position of Valuer-General Site Value for non-rural land –brought Queensland inline with other States –similar to market value of the land annual valuation cycles streamlined objection and appeal processes Independent chairpersons for objections to valuations > $5M mitigation methods –deduction for site improvement –offset allowance

21 © The State of Queensland, Department of Natural Resources and Mines, 2012 Independent Peer Review Panel In 2012 the Independent Peer Review Panel conduction a review of the operation of SVS and the initial year of operations of the Queensland Land Valuation Act 2010 It is reasonable to believe that, on the foundations now established, the statutory valuation system in Queensland can be at least as good as the best of other Australian states, a claim that could not have been contemplated two years ago.” Moving Forward

22 © The State of Queensland, Department of Natural Resources and Mines, 2012 Business Vision Electronic Valuation Notice Online Objection Lodgement Online Valuation Roll Electronic Service Delivery ? Electronic Service Delivery

23 © The State of Queensland, Department of Natural Resources and Mines, 2012 SVS challenges Continue to delivery a quality valuation service –maintain momentum of reform Delivering an annual valuation cycle in a rising or falling property market –Interpreting a complex market and respond to landowner objection and appeals Capturing corporate knowledge before experienced staff leave SVS Expert peer review process for complex valuations

24 © The State of Queensland, Department of Natural Resources and Mines, 2012 SVS Challenges Clear points of contact for our clients –Developing an MOU between the Valuer-General and local governments Improving Service Delivery –Electronic Service Delivery Valuation Reform Reference Group –Increasing expectation from stakeholders for information – communication and consultation Valuation concessions review by December 2012